Australian Strategic Materials (ASM) Q3 2025 TU earnings summary

Executive summary

• Building a vertically integrated rare earths and critical minerals business with operations in Australia (Dubbo Project), South Korea (Korean Metals Plant), and planned US expansion, focusing on high-tech metals for advanced manufacturing, defense, and clean technologies.

• Aims to provide a secure, sustainable alternative supply chain for rare earths, addressing global supply deficits and China's dominance.

• Strategic US expansion and phased Dubbo Project development, with piloting of heavy rare earth production in Korea.

• Achieved carbon net zero for Scope 1 and 2 emissions at KMP since commencement; improved ESG Risk Rating to 26.4 (Medium Risk).

• No reportable safety incidents at the Korean Metals Plant.

Market and industry conditions

• Global demand for rare earths, especially NdFeB alloys and powders, is forecasted to outpace supply, with a deficit starting as early as this year and intensifying by 2026, driven by sectors like EVs, robotics, and defense.

• China dominates the supply chain, controlling over 90% of mid-processing, and has imposed export restrictions on key alloys and rare earths, increasing supply chain risk and market disruption.

• Strong government and industry support for alternative supply chains in Australia, Korea, and the US.

• Rare earth and critical minerals markets impacted by US-China trade war, tariffs, and Chinese export restrictions; NdPr, Dy, and Tb prices rising due to supply constraints.

• Zirconia prices stable; hafnium and niobium prices under pressure from tariffs and supply chain tightness.

Significant events and developments

• ASM is the only ASX-listed company with established metals, alloys, and powders capability, able to fill gaps from Chinese supply disruptions.

• Korean Metals Plant (KMP) has a current capacity of 1,300 tpa NdFeB alloy, with a planned ramp-up to 3,600 tpa by 2027 and $60 million invested to date.

• Expansion into the US is advancing, with top states shortlisted, site selection in 2025, and funding applications submitted to the US Department of Defense.

• Dubbo Project in Australia is construction-ready, with a 20-year mine life, approvals in place, and is a primary feed source for global metals plants.

• Secured A$5M Federal Government grant for Dubbo Project rare earth options assessment and signed offtake agreements with Noveon Magnetics, USA Rare Earth, KCM, and Magnequench.